Saudi Aramco announced on 7 August that it is increasing its holding in Petro Rabigh to 60% through the acquisition of 22.5% from partner Sumitomo Chemical. Each firm currently owns 37.5% of the joint venture, with the remainder listed on the Tadawul exchange. Following completion of the transaction, Sumitomo’s stake will drop to 15%.
Aramco will pay Sumitomo $702mn for the stake, valuing Petro Rabigh at $3.1bn. The transaction is being priced at SAR7 per share ($1.86), which is below the SAR7.4 ($1.97) price that shares had closed at on 6 August. (CONTINUED - 802 WORDS)
